I'm reading through the WSO Technical guide, and found what seems like a contradiction:
(p.67) A callable bond has a price (or prices) built into the bond indenture that allow the issuer to buy back the bond on a certain date (or dates)... ...A put bond is essentially the opposite of a callable bond. A put bond gives the owner of bond the right to force the issuer to buy back the security...
(p.83) Call Option: Gives the holder the right to purchase an asset for a specified exercise price on or before a specified expiration date, but does not force them to do so... ...Put Option: Gives the holder the right to sell an asset for a specified exercise price on or before a specified expiration date, but does not force them to do so.
It seems the definition for both the call option and put option are contradictory between these two pages... unless there is a difference between a call/put bond and a call/put option? Please help!
Yes, they are totally different...one is a bond and the other is an equity derivative...no contradiction...
Good luck with your interviews. You will need it.
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